Exhibit 1 to Resolution No. 09-25
Revenue Budget Amendments
Fund Department Account Increase
(Decrease) G/L
General Fund Fire
Nuclear Planning
Assistance
(12,360) 001-4210-3393
General Fund Fire EOC
Nuclear Planning
Assistance
14,411 001-4220-3393
General Fund Fire Mutual Aid
Mutual Aid ReimbPersonnel
767,132 001-4230-3502
General Fund Fire Mutual Aid
Mutual Aid ReimbVehicle/Equipment
200,187 001-4230-3503
General Fund Fire Mutual Aid
Mutual Aid ReimbAdmin
196,148 001-4230-3504
General Fund Fire Mutual Aid
Mutual Aid ReimbExpense Claims
7,926 001-4230-3505
General Fund Vehicle
Replacement Fund Fire Mutual Aid Transfers In
80,000 050-4230-3801
$1,253,444
Expenditure Budget Amendments
Fund Department Account Increase
(Decrease) G/L
General Fund
Human
Resources Part-Time Pay
5,060 001-3140-4310
General Fund
Human
Resources Investigations
25,000 001-3140-6151
General Fund
Accounting &
Treasury Regular Pay
18,006 001-3510-4110
General Fund
Accounting &
Treasury Other Pay
300 001-3510-4599
General Fund
Accounting &
Treasury
Employer Paid
Benefits
10,585 001-3510-4910
General Fund
Accounting &
Treasury Pension Normal Cost
2,020 001-3510-4911
General Fund Police Regular Pay
(60,000) 001-4110-4110
General Fund Police Overtime Pay
50,000 001-4110-4120
General Fund Police Investigations 500 001-4110-6151
General Fund Police
Pre-Employment
Testing 6,000 001-4110-6153
Expenditure Budget Amendments, Continued
Fund Department Account Increase
(Decrease) G/L
Exhibit 1 to Resolution No. 09-25
General Fund Police
Outside Vehicle
Repair/Maint 50,000 001-4110-6604
General Fund Fire Mutual Aid Regular Pay 27,531 001-4230-4110 General Fund Fire Mutual Aid Overtime Pay 372,848 001-4230-4120 General Fund Fire Mutual Aid Part-Time Pay 18,420 001-4230-4310 General Fund Fire Mutual Aid
Employer Paid
Benefits 25,965 001-4230-4910
General Fund Fire Mutual Aid Pension Normal Cost 9,250 001-4230-4911 General Fund Fire Mutual Aid
Communication
Supplies 135,000 001-4230-5108
General Fund Fire Mutual Aid Safety Equipment 20,000 001-4230-5121 General Fund Fire Mutual Aid
Building Maint.
Supplies 6,000 001-4230-5502
General Fund Fire Mutual Aid Small Tools 5,000 001-4230-5530 General Fund Fire Mutual Aid Digital Services 4,500 001-4230-6129 General Fund Fire Mutual Aid
Outside Vehicle
Repair/Maint 24,500 001-4230-6604
General Fund Fire Mutual Aid Transfers Out 80,000 001-4230-8501 General Fund Fire Mutual Aid
Payment to Other
Agency 18,000 001-4230-8721
General Fund Vehicle
Replacement Fund Fire Mutual Aid Trucks 80,000 050-4230-7202 Measure Q/E Fund Harbor Part-Time Pay 10,000 003-6510-4310 Special Safety Grants
Fund Support Services
Medical
Examinations 17,600 282-4190-6720
Special Safety Grants
Fund Support Services Automobiles 55,000 282-4190-7201
Harbor Operating
Fund Harbor Contractual Services 53,317 331-6510-6106
Harbor Operating
Fund Harbor Telephone
3,359 331-6510-6201
Risk Management
Fund Risk Management
Other Ins/Employee
Bond
9,750 430-4317-6472
$1,083,511
Prepared By: ___AD, CC_____ Dept Review: __GK___
City Manager Review: _____ City Attorney Review: __ ____ Staff Report
TO: Honorable Mayor and City Council DATE: February 19, 2025 FROM: Greg Kwolek – Public Works Director
Austin Della, P.E. – Senior Civil Engineer
Cindy Cecil, S.E., C.E. – City Engineer
SUBJECT: Review of Capital Projects Prioritization
RECOMMENDED ACTION
Review and provide feedback to staff on the current priorities regarding capital projects.
DISCUSSION
The Public Works Engineering Division is currently working on over 40 active capital projects. Many of these projects deal with City Council priorities, aging infrastructure, and road, water, wastewater, and other systems improvements that impact the quality of life for Morro Bay residents and visitors.
Further, many of the projects are considered “high priority”. Most have already been allocated budget by City Council, but others are in earlier stages of project development.
Staffing resources to complete these projects are very limited. There are approximately 1.25 staff in Engineering available to advance capital projects at any given time due to other duties required of Engineering staff. Strained staff resources mean most projects are advanced incrementally with only 5-7 projects being completed annually. Meanwhile, critical infrastructure continues to age, construction costs increase, and upcoming projects cannot be developed while dozens of open projects remain to be completed.
The City has not engaged in a capital projects prioritization process in recent memory, if ever. The aim of this staff report is to identify all capital projects currently in progress and in wait, rank them in order of importance from an engineering standpoint, and present a proposed prioritization for input from City Council. A draft prioritization list was presented in a joint PWAB/CFAC meeting April 17, 2024. The current prioritization list has been updated to reflect project status changes.
Criteria considered for the proposed priority rankings in the Capital Project Prioritization list (Attachment 1) include:
Project Status
Regulatory/Grant/Other Deadline Requirements
Risk for Critical Failure
Risk for Claims Against the City
Preventative/Regular Maintenance
Through the development of this list, staff combined some projects for efficiency in project AGENDA NO: 9b
MEETING DATE: February 25, 2025
implementation.
One desirable outcome of the City Council discussion is to identify whether the Council believes any of the current capital projects should be accelerated, paused, or cancelled altogether. In some cases, staff may need to provide more in-depth information at a future meeting to provide enough information to the City Council to make an informed decision.
Brief project descriptions of current capital projects with are provided below to provide more detail for the corresponding prioritization list.
CURRENT CAPITAL PROJECTS
WATER
Brackish Water Reverse Osmosis Floodproofing – This flood proofing project proposes to develop and implement an engineering solution to floodproof the Brackish Water Reverse Osmosis facility.
The facility was not flooded during the 2023 rains, but flood waters came within feet of the building.
However, a well on the site that is part of the RO system flooded during the 2023 rains, damaging the pump motor and shutting down the RO system. This facility is critical for providing clean drinking water to the City’s residents and visitors. The City recently received CalOES/FEMA hazard mitigation grant funds for this project. No timeline has yet been identified for this project.
Recycled Water/Indirect Potable Reuse – Completing the Recycled Water project is the third component of the Water Reclamation Facility Program and is required by the City’s agreements with federal Water Infrastructure Finance and Innovation Act loan program as well as the State’s Clean Water State Revolving Fund Loan program. Implementing recycled water infrastructure is intended to enhance the resilience of the City’s water supply by augmenting the supply contained in the Morro Groundwater Basin. This project is currently funded through the overall Water Reclamation Facility Program budget and is scheduled to be complete by September 30, 2026.
Morro Basin Wellfield Rehabilitation
City staff has consolidated the Morro Basin Wellfield Rehab project into the recycled water project to create efficiencies with procurement of design and construction. The wellfield is at risk from sea level rise and flooding from Morro Creek, posing a threat to the reliability of our drinking water supply. Rehabilitating the wellfield will ensure that all wells are installed according to current standards and regulations, enhancing their resilience to environmental hazards. Currently, the City has an Engineering firm starting the design of the wellfield rehab, as part of the recycled water contract. The project budget is for the wellfield rehab work stands at $1.725 Million. The work is intended to be performed in conjunction with the recycled water project.
Nutmeg Pressure Zone Consolidated Project – The Nutmeg Pressure Zone project addresses fire flow and water storage deficiencies in the Nutmeg Zone. While the original project concept included an expensive replacement Nutmeg tank much larger than the current tank, the Utilities and Engineering teams have been diligently exploring alternatives to alleviate the need for building a new tank. These alternatives, including the consolidation of pressure zones and system looping, are currently being modeled by the City’s consultant. If deemed feasible, implementing these alternatives could significantly reduce the total project cost while still addressing the identified deficiencies effectively. The model is nearing completion and City staff will being working on the alternative approach design within the next few months. Current funding of this project stands at $2.7 Million
from the Water Fund, though the project is expected to be approximately $8 Million. The project includes multiple small projects- some which have already been identified in the one water plan, and others that have not yet been identified and will be a result of the alternative solution that we are working towards. Some of the identified project are listed below because they have additional constraints that make them higher priority projects.
Rehabilitation of Nutmeg Tank – As the City team explores an alternative to building a 1.3 MG tank at the Nutmeg Tank site, the use of the existing tank would be a necessity to make this happen. The condition of the existing tank is currently unknown and so we would need to conduct an assessment, and rehabilitation to extend the useful life of the existing tank. There is currently no schedule for completion of this task.
Errol/Bike Path Water Main Upsizing – The upsize of the water main from Errol Street to the bike path is addresses one of the identified bottlenecks in our water distribution system.
Upsizing this line will significantly improve fire flow capabilities as highlighted in the City’s One Water Plan. The location of this project with respect to the proposed SR1/SR41 roundabout construction makes this project a priority because the construction would have to be complete prior to the construction of the roundabout or coordinated with the construction of the roundabout. That said, there is currently no project schedule.
Main/Sunset Water Main - The Main/Sunset Water Main project, would also address identified bottleneck in our water distribution system, ultimately enhancing fire flow capacity. Similar to the Errol/Bike Path Water Main Upsizing, its completion is particularly urgent due to its location with respect to upcoming infrastructure projects, specifically the proposed SR1/SR41 roundabout. There is currently no schedule for this project.
Ridgeway Tank Rehabilitation – The Ridgeway Tank provides potable water for the City and contributes to the City’s fire suppression storage system. The tank, which serves a portion of the South Morro Bay community, was not included in the recent six-tank rehabilitation project and requires evaluation to ensure continued reliability and compliance with water storage standards. The Ridgeway Tank Project will assess the condition of the tank’s external and internal surfaces to determine necessary repairs, including potential coating rehabilitation. A second phase of the project would implement any necessary repairs, upgrades, and recoating. This project is not currently authorized by the City Council and has no current fund. Staff recommends this project be commenced within the next two to four years.
Whale Rock Crossing Project – The City of San Luis Obispo has requested the City of Morro Bay to install a pipe casing and a length of pipe underneath the driveway to the Water Resources Center to accommodate the Whale Rock Pipeline. The current configuration has the Whale Rock Pipeline below a 12” concrete slab as well as several utilities, which City of San Luis Obispo believes precludes access to their pipeline for maintenance. Currently, the City is in negotiations with the City of San Luis Obispo on remedies and financial responsibility. Because of this. there is currently no project funding or timeline to complete.
One Water Update – The current One Water Plan was completed in 2018. Staff recommends that this plan is updated every five years to incorporate changes in the City’s water, sewer, and storm water systems. This plan serves as the basis for water, sewer, and storm drain related conditions to private development projects. Without an update, the City cannot issue conditions on projects that
accurately reflect the needs of the system. This project currently has authorization from City Council and has initial funding $60,000 from the Water and Sewer Funds. The project has no timeline.
BWRO Consolidated Project
The Brackish Water Reverse Osmosis (BWRO) treats Morro Basin groundwater, which is the City’s secondary source of potable water and is critical to the delivery of water to the City’s residents and businesses. There are several components of the BWRO facility that are in need of upgrades, modifications, and repairs. These are described below.
Brackish Water Reverse Osmosis and Well Field Backup Power The BWRO and Well Field Backup Power project will ensure Morro Bay has a reliable water supply during emergencies. Since the City depends on the State Water Project for its main source of water, a backup system is needed in case both State Water Supply and power are unavailable. In the absence of a reliable backup power system, a power outage could render the City incapable of treating and supplying water, threatening the City’s ability to meet the essential water needs of our community.
Since the BWRO and the wellfield operate as one system, with the BWRO plant treating well water to produce potable water, staff combined the two projects. To keep this system running during a power outage, the City hired the electrical engineer who designed the backup generator at Pump Station A (PSA) to also design electrical plans that allow the BWRO plant to run off of PSA’s backup generator. These electrical plans are 100% complete and ready for construction.
Work on the wellfield backup power was moving forward, but the electrical contractor discovered that a new transfer switch is needed to connect the portable generator. This transfer switch has a long lead time of 6 to 12 months, so the project is paused while the City waits until this equipment arrives to continue work. Once installed, this system will ensure that the City can provide safe drinking water even if State Water Supply and power are both out.
Reskin
The BWRO Reskin project was initiated to protect the City's critical infrastructure and water supply by re-roofing and reskinning the existing building. The reskinning and replacing the roof will protect sensitive electrical equipment from potential damage caused by leaks.
Currently the City is in the process of getting a contract ready to take to council to complete the Reskin/Reroof. The immediate need is to have a watertight building to protect the sensitive electrical equipment inside the building. This project was authorized by City Council with a project budget of $200,000, but it is likely actual costs will exceed this budget by and $150,000. Estimated project completion time is approximately 9 months.
Replace RO piping Tank Modifications
This project will address the RO system deficiencies, increase the RP system reliability, and install most of the outside tanks and equipment inside the building to protect them from the elements and improve the visual appearance of the area. This also includes the purchase of two new calcium tanks to use in conjunction with the two current tanks as well as to purchase a tank for a chemical cleaning system, re-pipe the calcium and chemical injection process, and provide an acid treatment skid, and an anti-scalant skid. The project is needed to accommodate RO plant flows. The two current tanks are overloaded and prone to overflow, two additional tanks would alleviate the overflow and would allow it to get 100% of the calcium
treatment process instead of just 75%. Currently there are no chemicals skids for dosing and the acid treatment skids and anti-scalant skid would be used to ensure proper dosing into the new membranes. The City is working with a consulting Engineer to improve the calcium treatment but no other progress on adding tanks has been initiated. Council has allocated $300,000 for this project and there is currently no timeline.
Building Improvements and Piping Modifications
The current orientation of the BWRO facility discharge infrastructure connects to this existing effluent discharge system, however it will need to be reoriented within the BWRO building to connect to existing conveyance infrastructure within Atascadero Road which connects to the air-relief structure. Additionally, the roll-seal system connecting directly to the City’s existing water wells within the BWRO facility is to be oriented to discharge to the existing Pump Station-A to be recycled at the WRC. The City of Morro Bay owns and operates six wells in the Morro well field to supply their Brackish Water Reverse Osmosis (BWRO) Facility.
Currently, the BWRO brine effluent discharges to a once shared ocean outfall with the old power plant just east of Morro Rock. The Regional Water Quality Control Board has directed the City to relocate the brine effluent discharge point to the City’s existing air-relief structure that connects to their ocean outfall used for the WRC since the power plant outfall is no longer in use and the brine effluent discharge is no longer being diluted. The project would also include removal of existing BWRO infrastructure that’s not needed.
The city has completed the necessary connections to the outfall structure and PSA and only needs to complete the piping modifications on the BWRO site to complete the necessary compliance requirements. The City council has allocated $400,000 for this project and there is currently no timeline.
SEWER
Brine Line – Despite completion of the conveyance facilities project of the great Water Reclamation Facility (WRF) Program, some associated projects still remain that will require significant staff effort.
These include resolution of a capacity issue with the brine line that conveys treated wastewater to the ocean outfall as well as a potential capacity issue with the pipeline that conveys advanced treated water to the injection wells. The City is currently in negotiations with the designer of the pipelines and the contractor to resolve these issues. It is likely that a resolution will require construction of additional facilities to address the capacity issues. Any costs associated with this project will be funded through the overall WRF budget to the extent that the City is liable for these costs at all. The project timeline is dependent on the result of the negotiations.
Beachcomber Sewer Main Replacement - The sewer system in the Beachcomber area experiences the inflow and infiltration (I&I) issues which stem from aging sewer pipes or manholes, strains the wastewater system unnecessarily, leading to increased treatment costs. I&I issues lead to high volumes of storm water being sent to the Water Resources Center for treatment during rain events. Addressing these issues would alleviate the I&I burden on the system and reduce associated operational costs. While plans for the project are fully prepared, construction cannot begin until an alternatives analysis for the backyard sewer project (below). This project has been authorized by the City Council and currently has $1,900,000 in the project budget. Actual project costs are unknown.
This project is currently on hold to allow staff to focus on other priority projects.
Beachcomber Sewer Main Replacement (Backyards) – Completing the Beachcomber Backyard project will address the significant inflow and infiltration (I&I) issues affecting the Beachcomber/beach
tract area. Currently, most of the sewer submains serving homes along the area’s side streets run through the backyards of private property owners rather than underneath the street. In many cases, property owners have built on top of these submains, and this presents a challenge to an approach of replacing the submains in the backyards. It is therefore imperative to conduct an alternatives analysis to determine the most effective approach—whether to keep the sewer line in the backyards or relocate it to the street. Without this analysis and decision, the City cannot move forward with the project. This project has been authorized by the City Council and currently has $195,000 in the project budget. Actual project costs are unknown. This project is currently on hold to allow staff to focus on other priority projects.
Atascadero/Main Sewer Main Replacement – The Atascadero/Main Sewer project is intended to upsize sewer mains along the Atascadero Road and Main Street corridors. Despite being in the preliminary planning phase, it's evident that the current infrastructure's replacement poses significant challenges due to its depth and high groundwater levels. Therefore, exploring alternatives becomes crucial to effectively address the capacity concerns in a cost-efficient manner. This project is authorized by the City Council and currently holds a $8.95 Million budget. This project is on hold to allow staff to work on other priorities.
SAFE Filter Protection - The SAFE Filter project is necessitated by a construction-related issue at the Water Resources Center (WRC), where high levels of hydrogen sulfide gas (H2S) have caused deterioration in the concrete tank of the safe diversion box. To address this, final flood negotiations with the contractor FBV concluded with an agreement for them to compensate the City to resolve the issue. This project is urgent to prevent further damage, ensuring the structural integrity and functionality of the tank. Completing this project promptly is crucial to mitigate any additional deterioration caused by H2S gas and to avoid escalating repair costs and potential operational disruptions. The City expects this project to be complete within one or two years.
Waste Water Treatment Plant Decommissioning – Decommissioning and Demolition of the old Wastewater Treatment Plan (WWTP) is a condition set by the California Coastal Commission in the City’s Coastal Development Permit (CDP) for the Water Reclamation Facility Program. The condition requires the City to restore the WWTP site by removing all WWTP infrastructure. Given that the infrastructure and the site itself is jointly owned between the City and the Cayucos Sanitary District (CSD), the project is related to discussions between the two parties regarding future ownership. The City is also exploring with the Coastal Commission the potential for the City to condition the demolition work on a development at the site. The project is authorized by the City Council and has Currently, the City has $5,080,000 Million now budgeted, though it may be overfunded. The City released a request for proposal (RFP) for plans, specifications, and estimates so the project work can be bid out.
The RFP is due on February 27, 2025.
Outfall Inspection, Assessment, and Cleaning – The Outfall assessment and cleaning project was originally derived from a inspection completed approximately 15 years ago. Deficiencies in the outfall were identified, and a subsequent Outfall Management Plan recommended the City complete a conditions assessment and based on this assessment perform cleaning and maintenance of the outfall. Moreover, as the outfall is jointly owned with Cayucos Sanitary District (CSD), understanding its condition is essential for negotiating the division of assets between the City and CSD. Currently, the City is working on finalizing the required outfall management plan that is in draft form. This project has been authorized by the City Council and $600,000 has been budgeted. This project has been on hold to allow staff to focus on other priority projects.
HARBOR
North T-Pier Rehabilitation – As revealed by recent inspections, the North T-Pier is in poor condition and in need of rehabilitation. In 2022, the City secured a $1.5 Million federal earmark towards the project that must be spent within 10 years; however, City staff deemed this amount as insufficient to begin work due to address all the identified safety and functionality issues with the North T-Pier.
Securing additional funding is necessary to move the project forward.
Tidelands Ramp - This project is for replacement of the concrete public boat launching facility ramp, the ramp apron, boarding floats, and boarding float abutments, and these infrastructure elements will contribute to, and maintain the safety of the launch ramp for all who use it. The ramp has rapidly degraded and poses a danger for boat launches at low tide because the end of the ramp is cantilevered. Larger boat trailers may fall off the end of the ramp while launching at low tide. Though the City received grant funding for this project from the State Division of Boating and Waterways Harbor Revetment Seawall Repairs – The Harbor Revetment Seawall Assessment was completed in January 2025. This assessment identifies components of the seawalls or revetments that are in a state of disrepair, critically damaged, or on the verge of failure. By obtaining a comprehensive understanding of the current condition and maintenance needs of our harbor's defenses, we can ensure the longevity and safety of this vital asset. The Assessment includes a high-level cost summary, which is essential for pursuing grant opportunities and allocating our budget more effectively. This proactive approach not only prioritizes the safety and integrity of our infrastructure but also positions the City to secure the necessary funding for required repairs or enhancements, safeguarding our community's interests and resources. While the City has no funding or timelines identified yet, City staff will be bringing this for discussion to City advisory boards and the City Council in spring of 2025.
New Pedestrian Dock Ramp - Embarcadero at Beach St. – The slope of the existing pedestrian dock ramp is at an unsafe angle at low tide. A new ramp is needed at an angle to the dock to reduce the slope. Removal of existing boulders would be required to install a new ramp at an angle.
Alternative solutions are currently being considered, and the project scope is under development.
Budget is available in the Harbor Capital Fund.
STORM DRAINS AND FLOODING
Storm Drain Analysis – The City has been awarded a $1,008,900 grant by CalOES/FEMA to determine the most effective mitigation measures to reduce flooding in the Main Street, Radcliff Avenue, Preston Lane, Errol Street and Atascadero Road areas of the City. The City share required by the grant agreement is $336,000.00. Hydrologic and hydraulic analysis of the Morro Creek watershed will be performed and a watershed management plan and alternatives analysis will be developed under this grant. This project is recommended to be completed in the next one to three years.
Storm Drain Replacement Program – Completing annual Storm Drain Replacements is essential due to the deteriorating condition of the existing storm drain system constructed with corrugated metal pipe (CMP). Our corrosive native ground conditions have accelerated the degradation of the CMP, leading to widespread failures throughout the city. With four sections already replaced in the past year and more in need of replacement, addressing this issue is crucial to prevent further failures and associated damages. Prioritizing proactive replacement ensures the reliability and functionality of our stormwater infrastructure, minimizing the risk of flooding and protecting public safety and property.
Currently, the City has been targeting failed storm drains that have surfaced due to large voids. The City currently has $200,000 available for this work.
Morro Creek Pedestrian Bridge/Erosion Control – The Morro Creek Pedestrian Bridge/Erosion project seeks to address vulnerabilities of the bridge to storms, sea level rise, and erosion. Recent storms have eroded the adjacent bank, causing portions of the bike path to fail and fall into the creek.
Delaying action will only exacerbate the damage, posing greater risks to pedestrian, bicycle, and emergency access. However, any intervention must comply with the Coastal Development Permit issued for the bridge, emphasizing the need for prompt assessment and implementation of appropriate measures to mitigate further erosion and ensure the safety and functionality of the bridge.
The City has discussed the potential solutions with the Coastal Commission. Further conversations are needed with Coastal Commission to determine our path forward on this project. There has been no project scope, funding, or timeline determined at this time.
Canet Pedestrian bridge Removal Project – When the City inherited this pedestrian bridge (along with other utilities infrastructure) from the County after the City’s incorporation, the agreement included maintenance of the bridge. The City has conducted little maintenance to date. Consequently, the bridge has deteriorated to the point of posing a safety hazard to anyone attempting to use it and access has been blocked. Given its current condition, the bridge represents a liability for the City, and the City will have to make a decision whether to improve the bridge or find some other solution. No funding or timeline for this project has been identified.
Storm Drain outfall & DI Upgrade at Beach parking at 100 Atascadero Rd. – High tides fill this storm drain with sand. Regular maintenance is required to clear this storm drain between the beach and the drain inlet in the parking lot. This needs to be studied to determine how to protect the storm drain from sand. The City has sources of funding to address storm drainage issues, but no specific funding or timeline has yet been determined.
Bike Path Drainage – The heavily used bike path on the south side of Main Street between Quintana and Lila Keiser Park is flooded at its low point during rain events. Installation of a culvert beneath the bike path or another solution to direct water off the bike path is needed. The City has storm related funding available to pay for this project, but no specific funding or timeline has yet been determined.
FEMA - Completing the FEMA project is imperative due to the extensive damage caused by flooding and storms in early 2023. The City has been actively working with FEMA PDMGs over the past two years to submit claims for these damages, a process that demands significant time and resources from City staff. Ten FEMA claims have been approved with funds obligated. Six projects are in the final stage of FEMA review. With multiple projects at various stages, some completed and others yet to start construction, the FEMA project is anticipated to continue for the next one to two years.
Prioritizing this project maximizes reimbursement for damages and facilitates the restoration of essential infrastructure to enhance community resilience in the face of future disasters.
ROADWAYS, SAFETY, and ACCESSIBILITY
Pavement Management - The City will complete the Council approved FY2024/25 $3.9 million paving project in April 2025. At the conclusion of this year’s project, staff will begin working on the plans and specifications for the next Pavement Management Project, which should start in early spring 2026. An FY25/26 budget request for approximately $3 million be submitted to the City Council.
Quintana Road/Main Street Intersection and Corridor Improvements (Consolidated) – This project is a consolidation of the Local Road Safety Program, the Quintana/Main Intersection Improvements Project, and allocated funds for sidewalk repairs. A request for an audible signal crossing at Quintana Road and Main Street intersection was received by a visually impaired resident.
Disabled residents are presumed a benefit group per the U.S. Department of Housing and Urban Development (HUD) regulations. The proposed project will also facilitate improved accessibility for elderly residents, also a presumed benefit group. In addition to improved pedestrian push buttons, the intersection is in need of ADA upgrades to curb ramps. The City was awarded a Community Development Block Grant (CDBG) award in FY 2021/22 in the amount of $37,477 to cover a portion of the pedestrian push button costs. The grant funds will expire in 2025.
Completing the Sidewalk Improvements project is critical for ensuring safety and compliance with ADA requirements. Many existing sidewalk issues stem from the heaving of the subgrade caused by roots from street trees. It is evident that the tree species chosen for planting may not be suitable for street environments, leading to ongoing sidewalk deterioration. Before effectively addressing sidewalk improvements, a tree replacement plan must be developed and approved to mitigate rootrelated issues. Prioritizing this project not only enhances pedestrian safety and accessibility but also ensures long-term sidewalk functionality and minimizes ongoing maintenance costs. Total project budget is estimated to be close to $1 Million. No project timeline has been determined.
Roundabout Environmental - The completion of the Roundabout Environmental Reports is the required next step to hand over design and construction of the roundabout to Caltrans, which is scheduled for February 2026. With Caltrans committed to assuming ownership of the project following this phase, we anticipate relief from the staffing and financial burdens associated with this project at that time. This project is moving forward at the direction of the City Council in May 2023. Project funding is currently approximately $2.5 Million, though the City anticipates some return of this funding at the point of project transfer to Caltrans.
Active Transportation Program – State grant funding is be available for projects that enhance active modes of transportation including walking, bicycling; however, to access this funding, the City must first complete an Active Transportation plan to be eligible. This project is currently budgeted at $80,000 but is on hold to allow staff to focus on other priority projects.
PARKS AND FACILITIES
Trash Can Replacement Project - The current trash and recycling containers along the Embarcadero and Downtown areas are beyond their useful life, starting to degrade where doors are rusting and not functioning properly, and the current configuration allows for birds to pull trash out of containers, scattering material on the ground, leading to an unsightly appearance and potential for pollution in the bay that could impact fish and wildlife. This project is in progress and expected to be completed in the next six months.
Veteran’s Hall Audio/Visual Replacement - The Vet's Hall project will replace the outdated and unreliable Audio Visual (AV) system, whose failure has caused public meeting interruptions. City staff is working with a consultant to present three design alternatives to the City Council for review and selection in April 2025. Once the City Council selects a design alternative, the consultant will begin installation and setup of the A/V system, which will be completed in summer 2025. The project budget for this work, as well as other ADA access, security, and building systems upgrades is $519,000.
Coleman Park Improvements – Due to identified structural issues with the existing restroom at Coleman Park, the restroom was demolished in 2021. Public outreach was conducted in 2021 and conceptual designs have been created and presented to the PWAB and the City Council. Based on the feedback received from these boards, City staff successful won a $600,000 State grant to develop the park. City staff are reevaluating the project scope to prioritize construction of a public restroom and associated access while retaining all grant funding. Project scope and timeline are forthcoming.
Playground Equipment Replacements – Much of the playground equipment at Lila Keiser and City Parks has been removed due to unsafe conditions. The City received grant funding to replace the equipment at these parks. The proposed equipment designs were reviewed by the Recreation and Parks Commission in fall 2024. Documents are being prepared to advertise for bidders to provide and install the equipment. The City currently has $250,000 of ARPA funding budgeted for this project.
Del Mar Park Pedestrian Bridge – The bridge decking material and approximately 30 percent of the supporting framing has deteriorated and needs to be replaced before it becomes a safety hazard.
This bridge is heavily used as it provides access to the park from the north parking lot. This project has not yet been authorized by the City Council, and project scope, timeline, and budget have yet to be determined.
Monte Young Restrooms – The restrooms at Monte Young Park are in poor shape and are not ADA compliant. It is likely that they will need to be replace entirely. This project has not yet been authorized by the City Council, and project scope, timeline, and budget have yet to be determined.
Cloisters Pond Clean Out – The Cloisters Pond has filled with silt and vegetation. The pond was designed to retain rain runoff and this capacity has been reduced, likely to approximately 20% of original capacity, impacting park drainage. A consultant is needed to manage environmental permitting required for this clean out. This project has not yet been authorized by the City Council, and project scope, timeline, and budget have yet to be determined.
Pickleball Courts – Pickleball advocates have expressed a desire to add four additional courts next to the existing pickleball courts, where the basketball courts are currently. They propose the basketball courts be moved near the playground equipment. A private donation of $31.4K has been made to the City. The total cost for this proposal is not known, but likely in the range of $250,000.
The pickleball community may have funds available to cover much or all of these costs. City staff time to solicit design proposals and construction bids would be required. This project has not yet been authorized by the City Council, and project scope, timeline, and budget have yet to be determined.
FISCAL IMPACT
No immediate impact. Priority projects may result in funding requests for the FY25/26 budget.
ATTACHMENTS
1. Capital Projects Prioritization List
Rank Identified Projects
1 Recycled Water/Morro Basin Wellfield Rehabilitation
2 Pavement Management
3 Veteran's Hall Audio/Visual Replacement
4 Decommissioning old WWTP
5 FEMA
6 BWRO Consolidated Project
7 Harbor Revetment Seawall repairs
8 Storm Drain Analysis
9 Floodproofing of RO
10 Coleman Park
11 Quintana Road/Main Street Intersection and Corridor Improvements 12 Roundabout Environmental
13 Nutmeg Pressure Zone Consolidated
14 Brine Line
15 Tidelands Boat Ramp
16 Outfall Inspection/Cleaning
17 Playground equipment replacements
18 Whale Rock Crossing
19 North T-Pier Rehabilitation
20 Morro Creek Ped bridge/erosion
21 Trash Cans Replacement
22 Ridgeway Tank Rehabilitation
23 SAFE Filter
24 Storm Drain Replacement - critical at Lila Keiser at wells 25 Del Mar Park bridge deck replacement, support repairs 26 Monte Young Restroom
27 Bike Path Drainage - west of Main, bet. Quintana and Lila Keiser Park 28 Storm Drain outfall & DI Upgrades at Beach parking at 100 Atascadero Rd 29 New Pedestrian Dock Ramp - Embarcadero at Beach St
30 Canet Bridge/Well
31 Beachcomber Sewer Main
32 Beachcomber Backyard
33 Atascadero/Main Sewer
34 One Water Update
35 Cloisters Pond Cleanout
36 Pickleball Courts
37 Active Transportation Plan
FY 24/25 Completed Projects
1 Tuscan Road Slide
2 LS1 FM Replacement
3 Sequoia Court Storm Drain
4 EV Chargers
5 Shasta Drainage improvement at Pacific
6 Ironwood Storm Drain replacement
7 Water Tank Rehab
8 Lila Keiser and PD Parking lot rehabilitation
9 Embarcadero EV Charging Station Installation
10 Speed limit sign installations